moonchild
VIP Contributor
Fibonacci levels are a popular tool among forex traders for identifying potential support and resistance levels in a market. These levels are based on the Fibonacci sequence, a mathematical pattern that appears in nature and is believed to have predictive qualities in the financial markets.
To accurately draw Fibonacci levels, follow these steps:
1- Identify a significant high and low point in the market. These points will be used as the starting and ending points for the Fibonacci levels.
2- Use a Fibonacci retracement tool to plot the levels on your chart. This tool can be found on most charting platforms and allows you to easily draw the levels based on the high and low points you identified.
3- Adjust the levels to fit the market. The Fibonacci levels will not always line up perfectly with the market, so you may need to adjust the levels slightly to better fit the current market conditions.
4- Monitor the market for potential support and resistance levels. Once you have drawn the Fibonacci levels, keep an eye on the market to see if it reacts to these levels. If the market consistently bounces off of a particular level, it may be a strong support or resistance level.
To accurately draw Fibonacci levels, follow these steps:
1- Identify a significant high and low point in the market. These points will be used as the starting and ending points for the Fibonacci levels.
2- Use a Fibonacci retracement tool to plot the levels on your chart. This tool can be found on most charting platforms and allows you to easily draw the levels based on the high and low points you identified.
3- Adjust the levels to fit the market. The Fibonacci levels will not always line up perfectly with the market, so you may need to adjust the levels slightly to better fit the current market conditions.
4- Monitor the market for potential support and resistance levels. Once you have drawn the Fibonacci levels, keep an eye on the market to see if it reacts to these levels. If the market consistently bounces off of a particular level, it may be a strong support or resistance level.
